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June 21, 2010 02:00 AM

INTERNATIONAL

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    BKT, Kirkby Tyres ink distribution pact

    LONDON—Indian tire maker Balkrishna Industries Ltd. (BKT) has assigned distribution rights to its BKT brand farm and OTR tires in the United Kingdom to Liverpool, England-based tire wholesaler Kirkby Tyres Ltd.

    Kirkby Tires will use its presence at the Brityrex International tire industry exhibition in Manchester, England, in early October to educate customers about its new distribution agreement with BKT, according to Dave Richardson, Kirkby product manager.

    Pirelli abandons plans to buy Russian factory

    GENEVA—Pirelli Tyre S.p.A. has abandoned plans to buy a tire plant in Russia or to work with a brownfield facility and instead will proceed with plans to build a factory there, according to Pirelli Tyre CEO Francesco Gori.

    The company has not yet decided where it will build the plant or what capacity the unit will have, he added.

    Pirelli looked at a number of options in Russia over the past year, Mr. Gori said, but has decided not to pursue any pre-existing facility, preferring to build its own greenfield unit. He did not give any further details of the project.

    Goodyear plans to shut Taiwan factory by July

    TAIPEI, Taiwan—Goodyear plans to shut its Taoyuan, Taiwan, tire plant by July to cut costs. The closing is expected to be complete by July 31 and will affect about 236 workers. according to a spokesman, who said the company will continue to maintain a sales and service operation in Taiwan because Akron-based Goodyear is committed to that market.

    Machinery at the 39-year-old plant is being moved to other, more price-competitive plants in the region, the spokesman said.

    Most of the estimated 3,000 passenger, light truck and truck/bus tires produced daily at the factory are exported to other Asian countries.

    The plant was originally built by Tung Yung Tire and acquired by Goodyear in 1971.

    VW approves Hankook plant as supply source

    HAMBURG, Germany—Volkswagen A.G. has approved Hankook Tire Co. Inc.'s plant in Racalmas, Hungary, as a supply source for all of VW's models and brands.

    The approval sets the stage for Hankook to expand its OE supply situation with VW, Europe's largest car maker, according to Jin-Wook Choi, executive vice president of Hankook Tire in charge of Europe.

    Conti China plant to go on stream this year

    GENEVA—Continental A.G. expects to bring its $253 million, 753,000-sq.-ft. passenger and light truck tire factory in Hefei City, China, on stream later this year—nearly a year later than originally planned, said Nikolai Setzer, head of Conti's passenger/light truck tire business.

    He said building work was restarted toward year-end 2009 after a delay of about a year.

    Copyright 2010 Crain Communications Inc. All Rights Reserved.

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